The EU monitoring Microsoft & Google AI deals to prevent oligopoly

The EU is monitoring the latest moves by Microsoft and Google in the field of AI. The organization wants to make sure that antitrust rules are followed. For some time now, the EU has been legislating in favor of free competition in member countries, which has especially affected companies like Apple.

AI-based products and services are taking over the tech industry at an incredible rate. Currently, many companies are implementing AI, including non-tech ones. In the mobile sector, Google was the main pioneer in the implementation of complex AI models.

Google and Microsoft under EU scrutiny over AI deals

The portable and compact nature of smartphones prevents the integration of big LLMs. However, with this in mind, Google developed Gemini Nano, the “lite” version of its Gemini AI models. Currently, the model is integrated into the Pixel 8 series and the Galaxy S24 series. Its integration into Samsung mobile devices is one of the aspects that is being studied by the EU.

The organization fears that these types of agreements between industry giants will affect smaller players. Margrethe Vestager, the EU’s competition commissioner, said that “big tech companies could make it difficult for smaller foundation model developers to reach end users.” Part of the concern is the amount of resources required to develop AI models.

Regarding Microsoft, Vestager said the EU wants to “understand whether certain exclusivity clauses could have a negative effect on competitors.” In this case, she is referring to the huge investment Microsoft is making in OpenAI, the company behind ChatGPT. So far, the Redmond giant has invested a whopping $13 billion. Additionally, the EU is monitoring situations where large companies buy smaller ones to get talent. Such is the case with Microsoft’s acquisition of Inflection.

A full legislation for AI is still pending

Having taken the tech industry by storm, legislation around AI-based products and developments is still pending. The pace at which the AI industry develops makes the task even more difficult. Regarding this, the EU executive said that “a number of other preliminary antitrust investigations are ongoing into various practices in AI-related markets.” Vestager also noted that “now is the time to act. Strong competition enforcement is always needed at times of big industrial and technological changes.”

The EU’s goal is to prevent a few big companies from monopolizing the AI segment. “We remain vigilant,” Vestager added.